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Edited Transcript Of Tsla Lucre Conference Call...1-Aug-18 (Tsla)

I was simply sent this together with haven't had fourth dimension to compare it against the Alphaville liveblog* or my notes, I'll larn to that this weekend.

From Thompson Reuters via Yahoo Finance:

Thomson Reuters StreetEvents
Q2 2018 Tesla Inc Earnings Call
PALO ALTO Aug 3, 2018 (Thomson StreetEvents) -- Edited Transcript of Tesla Inc earnings conference telephone band or presentation Wednesday, August 1, 2018 at 9:30:00pm GMT
TEXT version of Transcript
Corporate Participants...
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Conference Call Participants...
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Presentation
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Operator [1]
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Good day, ladies together with gentlemen, together with welcome to the Tesla Q2 2018 Financial Results together with Q&A Webcast Call. (Operator Instructions) As a reminder, this conference may go recorded.
I would right away similar to innovate your host for today's conference, Mr. Martin Viecha, Senior Director of Investor Relations. Mr. Viecha, y'all may begin.
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Martin Viecha, Tesla, Inc. - Sr. Director of Investor Relations [2]
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Thank y'all really much, Sherry, together with skilful afternoon, everyone. Welcome to Tesla's minute quarter 2018 Q&A webcast. I'm joined today past times Elon Musk; J.B. Straubel; Deepak Ahuja; Robin Ren, our Head of Sales; Jerome Guillen, our VP of Trucks; together with nosotros too possess got our autopilot squad amongst us here; Andrej Karpathy, Director of AI; Stuart Bowers, our VP of Engineering; together with Pete Bannon, our Director of Silicon Engineering.
Our Q2 results were announced at virtually 1:00 p.m. Pacific Time inward the update missive of the alphabet nosotros published at the same link every bit this webcast.
During this call, nosotros volition hash out our concern outlook together with brand forward-looking statements. These comments are based on our predictions together with expectations every bit of today. Actual events or results could differ materially due to a number of risks together with uncertainties, including those mentioned inward our most recent filings amongst the SEC. (Operator Instructions)
Before nosotros restrict into Q&A, Elon has around opening remarks. Elon?
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Elon R. Musk, Tesla, Inc. - Co-Founder, Chairman, CEO & Product Architect [3]
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Hi, give thank y'all you for joining. First of all, I'd similar to say, we're incredibly proud of the Tesla squad for producing 7,000 Model 3, Model due south together with Model X vehicles inward the finally calendar week of June. Those were amazing efforts. So honored to go amongst such smashing squad to fuse that incredible result. It's similar mind-blowing. We continued to accomplish 5,000 Model 3s per week, 7,000 combined S, X together with 3, multiple weeks inward July, showing that we're able to make this on a sustained basis. And nosotros await to, inward the absence of a forcefulness majeure or around really unexpected events, go able to accomplish an average of 5,000 Model 3s or higher upwards for Q3, together with 2,000 Model 3, Model S, X or higher upwards per calendar week for Q3 every bit well. So essentially, 7,000 cars a week, addition for -- on average for Q3. So it's an amazing restrict from solely a yr agone when we're producing 2,000 vehicles a week. It's truly variety of a mind-blowing saltation forrad for a manufacturing company. So yes, it's incredible go past times the squad to make that. Many, many belatedly nights, weekends, extreme amounts of elbow grease together with lots of smart ideas. It's amazing.
The results you're seeing is that the Model three marketplace position part has surpassed all contender premium, mid-sized sedans combined. So Model three marketplace position part is right away a majority. July was a bulk of all premium sedans. That tendency is, nosotros think, probable to continue. So it's non -- nosotros make non recollect it volition halt there. I possess got Robin Ren here, who's our worldwide Head of Sales, to verbalise virtually around of the interesting elements that we're seeing inward damage of cars that people are trading in, the sales together with demand trends. It's looking really, truly positive.
We're too getting smashing feedback from Model three from our customers, together with we're right away delivering the performance dual-motor together with all-wheel drive versions. And the Model three reviews are outstanding, truly couldn't inquire for improve reviews from around of the toughest critics inward the world. And it's -- yes, together with simply the affair that we're recognizing is that the to a greater extent than Model 3s nosotros deliver to the field, it's truly causing viral increase of our sales. So nosotros deliver our Model three to somebody, they beloved it, they order all their friends, they are truly -- really, our customers are our principal sales force. They beloved their automobile together with possess got their friends for a drive, together with that's the affair that fundamentally drives our sales.
But non everyone has Model 3, obviously, thence nosotros require to larn the cars out at that spot for examination drives. As it is correct now, non fifty-fifty all stores inward North America possess got Model three for examination drives. Of course, nosotros prioritize getting cars to customers, but we're presently going to possess got Model 3s available for examination drives inward all stores, together with both the performance version together with the rear-wheel drive version. So nosotros simply desire people who volition non purchase a automobile until they examination drive it, simply non unreasonable. Although on Sunday, when I delivered it, testing out similar straight delivery, which I recollect is definitely the future, straight delivery from manufacturing industrial plant life to customers or wherever they are. The guy hither who bought it possess got never truly fifty-fifty sat inward a Model 3. I'm like, wow, okay, Mr. Raul, how make y'all experience virtually the automobile now? You haven't fifty-fifty driven it. He's like, "I beloved it. It's amazing." So yes, it seems to go truly well-received.
Yes, thence I'd gauge 7,000 cars a week. We believe nosotros tin go sustainably profitable from Q3 onwards. We'll attempt to heighten that charge per unit of measurement of Model three production steadily inward the coming quarters together with attempt to larn to the 10,000 cars a calendar week number every bit presently nosotros can. What we've found, every bit nosotros spent a lot of fourth dimension debugging a broad arrive at manufacturer issues, is that the potential for our existing lines to go able to make far to a greater extent than cars is much greater than expected that past times simplifying production lines, past times speeding them up, by, inward around cases, having things beingness done manually instead of automatic, together with inward other cases having go done automatic instead of manual, we've been able to accomplish dramatic improvements to the output of existing lines, which way that our CapEx growing from 5,000 cars a calendar week to 10,000 cars a calendar week is a tiny fraction. CapEx going 5,000 to 10,000 is a tiny fraction to CapEx needing to grow from 0 to 5,000 Model 3s. This is, I think, really skilful intelligence for majuscule efficiency of the company. And (inaudible) that's going from futurity bulk marketplace position to vehicles that nosotros produce.
So -- together with from an operating standpoint, from Q3 onwards, we're going to emphasize, our destination is to go profitable together with cash menses positive for every quarter going forward. Now obviously, if there's a large recession or there's a severe forcefulness majeure lawsuit that interrupts the provide chain, that's non e'er possible. But we're confident that -- together with provided the economic scheme is roughly where it is today, reasonably skilful together with there's non a large forcefulness majeure lawsuit that nosotros -- I experience comfortable achieving the GAAP income positive together with cash menses positive quarter every quarter from hither on out. It's -- I'll simply say, the major occasional elbow grease is we'll pay dorsum a large loan or something where at that spot may go -- simply because nosotros paid dorsum a large loan. But absent that, we'd go cash menses positive.
So in i lawsuit again, I give thank y'all the squad for their incredible go together with our customers for their support. Without the smashing people nosotros possess got at Tesla together with the customers who position their religious belief inward us past times buying our product, nosotros would non go hither today. And yes, I've truly never been to a greater extent than excited virtually the futurity of Tesla. We possess got a super exciting laid upwards of products to convey out inward the future. And yes, I mean, distressing if I audio a picayune tired, I've been working similar crazy inward the trunk store lately. But it's truly going great. I'm super excited. Some skilful people. And a number of the executive squad are here. If I could inquire the three key leaders of the Tesla autopilot squad to go here. So I'd similar to larn from hither to come across if autopilot leaders at Tesla could innovate themselves together with say a flake virtually what you're working on, what you're excited virtually inward the future. Sorry to position y'all guys inward the spot. But I recollect we're making pretty radical advances inward the quarter, software technology together with the vision neural net, together with then, really importantly, the Tesla self-driving technology that we've been working on for three years is finally coming to fruition. Pete Bannon is going to verbalise a lot virtually that. But it's a plug-in replacement for the existing computer, together with an guild of magnitude improvements inward operations per minute or frames per minute is the way to recollect virtually it. And nosotros tin larn say, they truly are key to Tesla total autonomy. And (inaudible) to go truly slowly to replace. I'll allow Pete verbalise virtually that. So we're going to initiatory of all amongst similar Stuart (inaudible)
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Stuart Bowers, Tesla, Inc. - VP of Engineering [4]
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Okay. Hi, I'm Stuart.
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Elon R. Musk, Tesla, Inc. - Co-Founder, Chairman, CEO & Product Architect [5]
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You're going to possess got to verbalise a lot louder.
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Stuart Bowers, Tesla, Inc. - VP of Engineering [6]
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Oh, yes, I'll simply verbalise extra loud. So I'm Stuart. Yes, I joined squad relatively recently. Incredibly excited variety of to come across the foundation the squad has built upwards until this betoken together with edifice on superlative of that correct now. So correct now, a lot of the focus is on Autopilot V9, which is our sort of on-ramp to off-ramp solution that's going to automatically endeavor to alter lanes, sympathise what lane the automobile is in, sympathise the road the user wants to move together with possess got that road for the user together with ultimately manus dorsum command to that user inward simply variety of rubber together with controlled....
...MUCH MORE including a brace versions of the 10 billion dollar apology.

$350.49 upwards 0.95 (+0.27%)

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